ECO 201 Final SNHU
Utility - Answer-benefit, pleasure, usage out of consumption you want to maximize utility
Law of Diminishing - Answer-The less you have the more valuable it is, the more you have the less
valuable.
Marginal Utility - Answer-Additional benefit or pleasure ( As you consume more of something value
declines)
Implicit Cost - Answer-lacks a paper trail, it is not traceable
Explicit Cost - Answer-has a paper trail, is traceable
Opportunity Costs - Answer-What you give up or for go, value of what you gave up
Economic Profit - Answer-Money left over after expenses
Marginal Cost - Answer-Cost of producing one batch
Incremental Cost - Answer-Cost of producing additional batches
Fixed Cost - Answer-A cost that does not change with level of production Ex. Rent or Land
, Variable Cost - Answer-A cost that changes with the level production Ex. Raw Material
Sunk Cost - Answer-Costs that are non retrievable, you can not get them back
Relevant Cost - Answer-Is making a decision to go one way or another, it is cost that is changeable
Ex. Go to movies, pay for tix or don't see movie
Perfect Competition - Answer-Large # of producers, Large # of customers, perfect information, free exit
and free entry, perfectly mobile resources, homogeneous product
Perfectly Competitive Firm - Answer-operate at minimum point of cost curve, zero economic profit ,
welfare is up , resources used optimally
Monopoly - Answer-one producer, economic profit long/short, reduce welfare, not optimizing societies
resources, product is higher and quantity is lower
Regulated Monopoly - Answer-economy of scale, control over resources
, patents and copy write, technological superiority
Oligopoly - Answer-Dominated and controlled by few
Concentration Ratio - Answer-CRx = Sales of Top X/ Total Industry Sales
Price Discrimination - Answer-act of charging different prices for the same product
Efficient Market - Answer-you can't not improve anybody's positions unless you reduce the well being of
someone else.
Utility - Answer-benefit, pleasure, usage out of consumption you want to maximize utility
Law of Diminishing - Answer-The less you have the more valuable it is, the more you have the less
valuable.
Marginal Utility - Answer-Additional benefit or pleasure ( As you consume more of something value
declines)
Implicit Cost - Answer-lacks a paper trail, it is not traceable
Explicit Cost - Answer-has a paper trail, is traceable
Opportunity Costs - Answer-What you give up or for go, value of what you gave up
Economic Profit - Answer-Money left over after expenses
Marginal Cost - Answer-Cost of producing one batch
Incremental Cost - Answer-Cost of producing additional batches
Fixed Cost - Answer-A cost that does not change with level of production Ex. Rent or Land
, Variable Cost - Answer-A cost that changes with the level production Ex. Raw Material
Sunk Cost - Answer-Costs that are non retrievable, you can not get them back
Relevant Cost - Answer-Is making a decision to go one way or another, it is cost that is changeable
Ex. Go to movies, pay for tix or don't see movie
Perfect Competition - Answer-Large # of producers, Large # of customers, perfect information, free exit
and free entry, perfectly mobile resources, homogeneous product
Perfectly Competitive Firm - Answer-operate at minimum point of cost curve, zero economic profit ,
welfare is up , resources used optimally
Monopoly - Answer-one producer, economic profit long/short, reduce welfare, not optimizing societies
resources, product is higher and quantity is lower
Regulated Monopoly - Answer-economy of scale, control over resources
, patents and copy write, technological superiority
Oligopoly - Answer-Dominated and controlled by few
Concentration Ratio - Answer-CRx = Sales of Top X/ Total Industry Sales
Price Discrimination - Answer-act of charging different prices for the same product
Efficient Market - Answer-you can't not improve anybody's positions unless you reduce the well being of
someone else.
